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Humber College Exam 4: Invigilated Theory Sample Questions:

1. A buyer is in the process of closing a transaction when a tornado causes damage to the property. The necessary repairs may extend past the closing date. Which of the following may be used to resolve this problem?

A) Change the completion date by using an amendment to the agreement of purchase and sale.
B) Change the completion date by using a waiver.
C) Change the completion date by using a notice of fulfillment.
D) A change is not necessary because the damage is out of the control of the buyer or the seller.

2. In regard to Environmental Site Assessments (ESAs), which of the following is NOT accurate?

A) An ESA is intended to determine if a property has been contaminated or is facing any environmental threats.
B) Every new commercial property must undergo an ESA prior to construction.
C) ESAs are regulated under the Canadian Environmental Protection Act.
D) Local building departments use ESAs as the basis for changes to municipal zoning bylaws.

3. Which of the following statements about industrial building components is correct?

A) Floor load refers to the weight of the building during construction.
B) Loading docks are only used to off-load products or raw materials.
C) Flat roofs are designed to be flat to hold water.
D) Bay depth is an important consideration when determining the layout of an industrial process.

4. A salesperson is representing a tenant client who is opening a new pet food store in a local strip plaza. The salesperson meets with their tenant to discuss display signage and review the guidelines in their commercial lease agreement. Which statement is NOT accurate regarding the commercial lease agreement's signage clause?

A) The tenant's signage is considered a trade fixture and shall remain the tenant's property.
B) The tenant's signage shall be immediately removed at the end of their lease term(s) at the tenant's expense.
C) The tenant's signage must be approved by the municipality and the landlord, and all associated costs shall be paid by the landlord.
D) The tenant's signage, from approvals to installation and ongoing maintenance, shall be at thetenant's own expense.

5. A buyer wants to purchase an industrial property for its international logistics and distribution center.
Currently, the building is used by a local courier company with small delivery trucks and vans. When drafting an offer to purchase this property, which of the following should be added regarding this change of use?

A) A clause to obtain the necessary mortgage amount
B) A clause to test the quality of the underground water source
C) A clause to ensure the truck parking spaces and turning radius are sufficient
D) A clause to check the condition of the trucks and vans

Solutions: